What Is the Bonus Tax Calculator?
This calculator estimates the after-tax (net) amount you actually take home from a work bonus in the United States. Bonuses are treated as "supplemental wages" by the IRS and are commonly withheld at a flat federal supplemental rate (22% for amounts up to $1 million in 2024), plus FICA taxes and any applicable state tax. Figures are estimates for withholding purposes and do not represent your final annual tax liability.
How to Use It
Enter your gross bonus amount, then the withholding rates that apply to you. The defaults reflect 2024 federal rules: 22% federal supplemental, 6.2% Social Security, 1.45% Medicare, and an editable state rate. Adjust the state rate to match where you work (or set it to 0 for no-income-tax states like Texas or Florida). The calculator returns your net bonus, the total withheld, and the breakdown by tax type.
The Formula Explained
The net bonus is computed as $$\text{Net Bonus} = \text{Bonus} \times \left(1 - \left(\text{FedSupplementalRate} + \text{FICA} + \text{StateRate}\right)\right)$$ where \(\text{FICA} = \text{Social Security} (6.2\%) + \text{Medicare} (1.45\%) = 7.65\%\). Each rate is converted from a percentage to a decimal, summed, and applied to the gross bonus. The effective rate is simply the total tax divided by the gross bonus.
Worked Example
Suppose you receive a $5,000 bonus with a 22% federal rate, 6.2% Social Security, 1.45% Medicare and 5% state tax. Combined rate $$= 22 + 6.2 + 1.45 + 5 = 34.65\%$$ Total tax $$= \$5{,}000 \times 0.3465 = \$1{,}732.50$$ Net bonus $$= \$5{,}000 - \$1{,}732.50 = \mathbf{\$3{,}267.50}$$
FAQ
Why is so much withheld from my bonus? Bonuses are withheld at a flat supplemental rate plus payroll taxes, which can feel high. You may get some back at tax time if your actual marginal rate is lower.
Does Social Security have a wage cap? Yes — the 6.2% Social Security tax only applies up to the annual wage base ($168,600 in 2024). This tool does not account for the cap, so reduce the rate if you've already hit it.
Is the aggregate method different? Employers may instead use the aggregate method, combining the bonus with regular pay. This calculator uses the simpler flat percentage method.
